Question

Received dividends of 3 cents in my IRA account after I converted the money to backdoor Roth. What do I do with he 3 cents?

Forum|Forum|4 years ago
June 6, 2022
1 reply
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I started doing backdoor Roth conversion last year. For this year, I transferred the money to my IRA account. Once the money made it, I did a backdoor Roth conversion. The IRA account had $0. I happened to look last week and found 3 cents in my IRA account. It turned out to be dividend. What should I do with the 3 cents? Should I convert them to backdoor Roth? I basically do not want anything to mess up my backdoor Roth conversion. Please advise.

Thanks,

Not A Product Question

Critter-3

You can ask the IRA custodian to distribute the 3 cents or just leave it in if you like as it will never make a difference.

If you do another backdoor next year make sure you move all the money and NEVER have the contributions in any interest/dividend bearing investment ... leave it in cash ... not even in a MM account.